UN: Fiscal Austerity Measures Driving Global Economy towards Recession

The United Nations Conference on Trade and Development (UNCTAD) has warned that fiscal austerity policies being implemented by countries are driving the global economy towards a recession.
The UN trade and development body also stressed that greater attention should be paid to high unemployment, which it called a more pressing problem than budgetary deficits.

“The vicious circle induced by fiscal contraction, weak financial institutions and financially fragile households is fuelling a crisis of confidence and holding back investment and job creation in the private and public sectors simultaneously,” the UN Conference on Trade and Development said in a policy brief published Monday.

“The countries threatened by recession and deflation should avoid intensified austerity measures because these are unlikely to produce the intended outcomes and could propel the world into a renewed bout of recession, or even into an outright depression,” UNCTAD cautioned.

http://www.thisdaylive.com/articles/un-fiscal-austerity-measures-driving-global-economy-towards-recession/105552/

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